Union Budget 2019: Ficci has said that customs duty should be abolished from anthracite coalIndustry body Ficci has recommended a series of steps for steel-making industry.
Among key changes, suggested by Ficci in its pre-Budget memorandum 2019-20, it has pitched for reduction in customs duty on a variety of materials used as key inputs in steel-making process.
"Availability of vital inputs, such as anthracite coal, coking coal, coke, pet coke, limestone and dolomite, in good quality is declining and industry has to depend on their imports on a regular basis," Ficci has said.Here are some of recommendations by Ficci for steel industry:Exemption from import duty on pet cokeIt is recommended that customs duty on pet coke be reduced from 2.5 per cent to nil.Reduction in customs import duty on anthracite coalThe basic customs import duty on anthracite coal is 2.5 per cent.
Since ferro alloy industry plays a vital role in manufacturing of steel, it is necessary to make available these reductants at international competitive price to make Indian steel mills more competitive.It is recommended that customs duty on anthracite coal be reduced from 2.5 per cent to nil.Reduction in basic customs duty on met coke to nilThe basic customs duty on metallurgical coke has been placed at 5 per cent.
Coking coal, steam coal and met coke are key inputs in steel making, accounting for a substantial portion of cost of steel production.The coke prices have surged sharply in recent months.
As a result, cost of this vital input in steel manufacturing has gone up necessitating increase in price of steel which is acting as deterrence to competitiveness of domestic products in international markets.If duty is reduced, it will help domestic steel industry to be cost competitive.Reduction in customs duty on coking coal to nilThe 2.5 per cent customs duty on coking coal has increased cost of steel-making substantially and rendered domestic steel being uncompetitive vis-a-vis imports.
This has adversely affected steel manufacturers in country.It is recommended that customs duty on coking coal be reduced to nil from 2.5 per cent.Here are some of other recommendations by Ficci:Exemption of import duty on ferrous and stainless steel scrapReduction in basic customs duty on graphite electrodes from 7.5 per cent to nil, imposition of 30 per cent export dutyIncrease in basic customs duty for certain steel products from 10 per cent and 12.5 per cent to 25 per cent on steel imports such ashot rolled steel, cold rolled steel, galvanised steel, colour coated steel, wire rodsIncrease in Basics Customs Duty on alloy steel bars and wire rods (steel long products)from 10 per cent to 15 per centIncrease of effective basic import duty on stainless steel flat products from 7.5 per cent to 12.5 per cent at par with other steel products